Payout Annuity Applications with the TVM Calculator
Solve the following problem. Round your results to the nearest cent as needed.
When you retire, you want to be able to take $1,100 out of a payout annuity monthly for your expenses. If you are planning on a 24 year retirement, and the payout annuity earns 10.4 % annual interest, how much will you need to put in your payout annuity at the beginning of your retirement?
Enter the values you need to put in the TVM calculator. Remember that money paid to the bank is negative and money received from the bank is positive.
NOTE: Put the letter x in the answerbox for the unknown value in the appropriate box below. The number solution will go in the final box in the last question.
PV=
Present Value
PMT=
Payment
FV=
Future Value
N=
Number of Compounding Periods
I%=
Annual Interest Rate as a Percent
P/Y and C/Y=
Payments per Year and/or Compounding's per Year
Use the link to the TVM Calculator below to solve the problem.
You will have to put a total of $
in your payout annuity at the beginning of your retirement.
dollars
TVM Calculator